Major Project to Wingellina nickel cobalt

Following the Federal Government’s addition of nickel to the Critical Minerals List earlier this year, the Wingellina nickel cobalt project has been granted Major Project Status by the Federal Industry and Science Minister Ed Husic.

Part of Nico Resources’ (ASX: NC1) Central Musgrave project in WA, Wingellina hosts one of the world’s largest undeveloped oxide-type nickel-cobalt reserves at the triple junction point between the Northern Territory, WA and the South Australian borders (Surveyor Generals Corner) about 450km southwest of Uluru.

Nico Resources managing director Jonathan Shellabear says the company welcomes this recognition of the project’s significance to economic growth, employment opportunities and regional development for the country.

“Wingellina is one of the largest undeveloped nickel-cobalt projects globally and one of very few development opportunities for a major new nickel development outside of the Chinese-dominated Indonesian nickel industry,” he said.

“The industry has undergone a major structural shift in recent times and experienced significant changes in supply dynamics and pricing.

“Notwithstanding the temporary challenges in the sector, if operating in the current environment, the Wingellina project would have survived the carnage that has enveloped much of the Western world’s nickel supply. It is a matter of time before such a substantial deposit like Wingellina provides a long term stable and secure supply of nickel and cobalt.”

Wingellina is a large oxide-type nickel-cobalt limonite deposit located in the Musgrave Ranges of WA, about 100km east of BHP’s West Musgrave nickel-copper project.

It hosts an open pit mining reserve containing 1.56mt of nickel metal and 123kt of cobalt metal (168.4mt at  0.93% nickel and 0.07% cobalt).

A prefeasibility study completed in December 2022 outlined a viable project capable of producing up to 40,000t of nickel and 3,000t of cobalt in a mixed hydroxide precipitate (MHP) for at least 42 years.

The MHP product contains essential critical minerals used in batteries and energy storage systems required for the global energy transition.

Being grant Major Project Status provides Nico Resources with access to the Major Projects Facilitation Agency, which will provide additional resources, including streamlining regulatory approvals, to assist in the project’s development.